Taiwan Fund, Inc

THE TAIWAN ® FUND, INC.

...... THE TAIWAN FUND, INC.

WHAT’S INSIDE Page Annual Report Chairman’s Statement 2 August 31, 2020 Report of the Investment Manager 4 About the Portfolio Manager 7 Beginning on April 1, 2021, as permitted by regulations adopted by the U.S. Securities and Portfolio Snapshot 8 Exchange Commission, paper copies of the Fund’s annual and semi-annual stockholder reports Industry Allocation 9 will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.thetaiwanfund.com), Schedule of Investments 10 and you will be notified by mail each time a report is posted and provided with a website link Financial Statements 12 to access the report. Notes To Financial Statements 15 If you already elected to receive stockholder reports electronically, you will not be affected by Report of Independent this change and you need not take any action. You may elect to receive stockholder reports Registered Public and other communications from the Fund electronically anytime by contacting your financial Accounting Firm 21 intermediary or, if you are a direct investor, by calling 1-800-426-5523. Other Information 22 You may elect to receive all future reports in paper free of charge. If you invest through a Summary of Dividend financial intermediary, you can contact your financial intermediary to request that you Reinvestment and Cash continue to receive paper copies of your stockholder reports. Your election to receive stockholder Purchase Plan 25 reports in paper will apply to all funds that you hold through the financial intermediary. If Directors and Officers 29 you invest directly with the Fund, you can call 1-800-426-5523 to let the Fund know you wish to continue receiving paper copies of your stockholder reports...... Chairman’s Statement

Dear Stockholders, The TAIEX Total Return Index (“TAIEX”) returned 31.44% during the 12 months ended August 31, 2020. After initially rising given a break in the China-U.S. trade conflict, the global stock market then experienced a severe decline due to the repercussion from the COVID-19 pandemic. However, stocks then rallied sharply over the last five months of the reporting period. The Taiwan Fund, Inc.’s (the “Fund”) total return for the 12 months ended August 31, 2020, including reinvestment of dividends, was 49.63%,1 an outperformance of 18.19% when compared to its benchmark, the TAIEX, which returned 31.44% over the same period. The factors that contributed to the Fund’s performance are detailed in the Report of the Investment Manager. During the 12-month reporting period, the Fund continued the repurchase of shares under its Discount Management Program (the “Program”) and made purchases totaling 226,158 shares. During the period, the average discount at which the Fund’s shares traded below net asset value was -15.88%, with a high of -21.47% and a low of -11.40%. In April the fund announced that it would temporarily suspend repurchases under the Fund’s Discount Management Program. The Fund’s Board of Directors noted that the impact of the COVID-19 pandemic on global economies and stock markets was creating excessive volatility in stock prices. Under such conditions, the Board determined that continued repurchases under the Discount Management Program was not in the best interests of the Fund or its stockholders. The Board continues to monitor the situation on a regular basis.

Note 1 Total investment return at net asset value (“NAV”) is based on changes in the NAV of Fund shares and assumes investment of dividends and distributions. Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions at actual prices pursuant to the Fund’s dividend reinvestment program.

2 On behalf of the Board, I thank you for your continuing support of the Fund. Sincerely,

William C. Kirby Chairman

3 Report of the Investment Manager

Market Review For the 12-month period ended August 31, 2020, the TAIEX Total Return Index (“TAIEX”) returned 31.44% in U.S. dollar terms. Waves of optimism and pessimism have impacted the market since our last annual update. The reporting period started well, although still overshadowed by the confrontation between the United States and China. The Phase One trade agreement in January 2020 seemed to offer hope of a truce in the trade war and markets rallied sharply. Tragedy then struck in the form of COVID-19, which took the TAIEX below 9,000 by mid-March 2020 and went on to cost the world incalculably more in human terms. Had it not been for the unprecedented actions of the U.S. Federal Reserve (“Fed”), the onset of the pandemic likely would have been the beginning of something potentially far more serious for the markets. Instead, we can now look back on a bull run that emerged out of those dark days in March, which ultimately took the TAIEX above 12,500 by the end of August 2020. Throughout the entire 12-month reporting period, Taiwan has been at the eye of the ongoing geopolitical storm, by virtue of the island’s key roles in international supply chains and technology. The Taiwan Fund, Inc.’s (the “Fund”) net asset value (“NAV”) return for the year ended August 31, 2020, was 49.63%, an outperformance of 18.19% when compared to its benchmark, the TAIEX.

Portfolio Activity The Fund’s gains were driven by our overweight allocation to the information technology (“IT”) sector, with approximately 1,150 basis points of active contribution coming from this sector alone. These returns were derived from positions taken in integrated circuit design houses, optoelectronics, electronic components and PC peripherals. Our key investment thesis behind these allocations was based around the China insourcing trend and the effects this would have on demand for chip design. In addition, Apple suppliers such as Global Lighting Technologies and Taiwan Semiconductor Manufacturing Co. (“TSMC”) benefited from changes in product specifications at

4 the consumer electronics giant. Furthermore, some of our holdings had strong performance on demand for increased bandwidth in data centers. Returns were further enhanced by our underweight positions in the financials and materials sectors, mostly reflecting our less positive views on bank holding companies and petrochemicals. On the negative side of the ledger, we were fortunate to see very little underperformance. Only consumer discretionary was a modest headwind for performance, and there were no other sectors where our allocations significantly underperformed the benchmark. In our view, TSMC is a core holding in the portfolio, which at times can outperform almost every stock in Taiwan. However, in order to control for single stock risk, no more than 25% of the Fund may be invested in any single stock. TSMC can consistently be more than 25% of the TAIEX benchmark, so this means we are frequently forced to be underweight this company, which this year led to TSMC being a relative detractor. We continue to try to search for undervalued growth stocks that are less widely owned in order to outperform the benchmark.

Market Outlook Most recently, we had concerns around valuations heading into August 2020 that turned out were well-justified as volatility struck the market, but we started to put our large cash reserves back to work towards the end of the month. Taking advantage of the panic caused by the latest United States moves against Huawei and, more recently, Semiconductor Manufacturing International Corp. (“SMIC”), we accumulated positions in companies that had been sold down to levels where we could once again see value. In certain sectors, especially integrated circuit design, there are stocks which are 20-30% off their highs. Given that liquidity conditions continue to favor the upside in risk assets, we believe the opportunity for the near-term lies in reducing the Fund’s cash exposure further. However, our medium-term outlook is clouded by several factors, the greatest of these being the U.S. election and the potential for a COVID-19 vaccine offering a return to normality. The first of these is likely to be only transitory in its effect, since the path of the trade war and the deterioration in the relationship between the United States

5 and China seems set to continue regardless of who becomes the 46th President of the United States. This gives us the comfort we need to buy the dips in the near-term. That leaves the success or failure of the various COVID-19 vaccines as the major binary event that could drive large changes in market conditions. Should an effective vaccine become available in the coming months, it is conceivable that massive pent-up demand for leisure services could quickly drive a rebound in related employment. In such an environment, what would the Fed do to contain the effects of the massive liquidity injection we saw in the second quarter of 2020? On the other hand, a continued pandemic, along with the structural long-term unemployment it would create, marks a substantially different path for risk assets. As a fundamental, stock-picking investor, the macro backdrop is a factor, but does not drive our short-term decision-making. We will maintain a close watch on developments with the vaccine programs and any related central bank or government responses. Our thematic views, led by 5G-related trends and the evolving environment for global supply chains, will continue to inform our investment decisions for the long run, as we seek to accumulate stakes in great companies at reasonable prices.

6 About the Portfolio Manager (unaudited)

Allianz Global Investors US (“AllianzGI US”) is part of the Allianz Global Investors group of entities, which are wholly-owned subsidiaries of Allianz SE, one of the world’s largest financial services providers and a publicly-traded company. Allianz Global Investors is a leading active asset manager with over 760 investment professionals in 25 offices worldwide and managing $604 billion (as of June 30, 2020) in assets for individuals, families and institutions Corrina Xiao Senior Portfolio Manager, Domestic Investment, Taiwan Corrina Xiao joined the firm in 2007 and has 17 years of industry experience. As Senior Portfolio Manager and Head of the Taiwan Equity Team, Corrina manages three investment vehicles focused on Taiwan. She manages the flagship AllianzGI Taiwan Equity mutual fund which has been recognized by Lipper as the number one Taiwan mutual fund over 3, 5, and 10 years. Additionally, Corrina manages a very substantial pension mandate and, most recently, was appointed Lead Portfolio Manager for the US-listed closed-end fund, Taiwan Fund Inc. In July 2019, Corrina was honored with the Citywire “Best Female Fund Manager in the World” award. Before joining AllianzGI US, Corrina was a research analyst at Yuanta Investment Consulting from 2004 to 2007. Prior to that, she was a research analyst at Pacific Securities. She holds both a Master’s and a Bachelor’s degree in Finance from Chaoyang University, Taiwan. Weimin Chang Chief Investment Officer, Taiwan Mr. Chang is responsible for all onshore investment strategies in Taiwan, covering investment processes, performance and all investment professionals. He is also the chairman of AllianzGI US’s Global Allocation Committee Taiwan and a board member of AllianzGI US’s Taiwan Management Council. He has 24 years of industry experience, including 16 years as a CIO. Prior to joining the AllianzGI US, Weimin was Executive Director of Merito Capital Management Ltd. from 2010 to 2011. Before, he was the CIO of Franklin Templeton Sealand Fund Management and also worked as the CIO of SYWG BNP Paribas Asset Management in Shanghai. Previously, Weimin was the Head of Taiwan Equity Research at Merrill Lynch and covered Taiwan equities strategy. He graduated from National Chengchi University with a bachelor’s degree in Journalism and obtained an MBA from London Business School. 7 Portfolio Snapshot*

Top Ten Equity Holdings Top Ten Equity Holdings

Holdings as of August 31, 2020 % Holdings as of August 31, 2019 % Taiwan Semiconductor Manufacturing Co., Ltd. 21.8 Taiwan Semiconductor Manufacturing Co., Ltd. 17.9 Taiwan Cement Corp. 4.5 MediaTek, Inc. 5.3 Silergy Corp. 4.2 Egis Technology, Inc. 4.6 Epistar Corp. 3.5 Accton Technology Corp. 4.1 Accton Technology Corp. 3.3 RichWave Technology Corp. 3.6 Unimicron Technology Corp. 2.8 Silergy Corp. 3.5 FLEXium Interconnect, Inc. 2.4 ASE Technology Holding Co., Ltd. 3.5 Speed Tech Corp. 2.4 Global Lighting Technologies Inc. 3.4 Zhen Ding Technology Holding Ltd. 2.0 Genius Electronic Optical Co., Ltd. 3.2 TCI Co Ltd. 2.0 Wiwynn Corp. 2.9

Top Ten Industry Weightings Top Ten Industry Weightings

Weightings as of August 31, 2020 % Weightings as of August 31, 2019 % Semiconductor Industry 37.1 Semiconductor Industry 46.8 Electronic Parts & Components Industry 17.3 Electronic Parts & Components Industry 7.8 Cement Industry 6.0 Optoelectronics Industry 7.8 Optoelectronics Industry 5.2 Electronic Equipment & Instruments Industry 5.5 Communications & Internet Industry 4.1 Communications & Internet Industry 4.1 Food Industry 3.0 Other Industry 3.4 Computer & Peripheral Equipment Industry 3.0 Technology Hardware Industry 2.9 Electric & Machinery Industry 2.9 Food Industry 2.7 Textiles Industry 2.8 Other Electronic Industry 2.7 Technology Hardware Industry 2.3 Building Material and Construction Industry 1.7

* Percentages based on net assets.

8 Industry Allocation

Industry Allocation (as a percentage of net assets) Trading & Consumers’ Goods Industry Electrical Components & Electric & Machinery Industry 2.0% Equipment Industry 2.9% 2.0% Electronic Equipment & Instruments Industry Computer & Peripheral Technology Hardware Industry 1.4% Equipment Industry 2.3% 3.0% Textiles Industry Semiconductor Food Industry 2.8% Equipment Industry 3.0% 1.3%

Communications & Automobile Industry Internet Industry 1.3% 4.1% Healthcare Equipment & Supplies Industry Optoelectronics Industry 1.0% 5.2%

Cement Industry Other Industry 6.0% 1.1%

Other Assets and Liabilities, Net 6.2%

Electronic Parts & Components Industry 17.3%

Semiconductor Industry 37.1%

Fund holdings are subject to change and percentages shown above are based on net assets as of August 31, 2020. The pie chart illustrates the allocation of the investments by industry. A complete list of holdings as of August 31, 2020 is contained in the Schedule of Investments included in this report. The most current available data regarding portfolio holdings and industry allocation can be found on our website, www.thetaiwanfund.com. You may also obtain updated holdings by calling 1-800-426-5523.

9 Schedule of Investments/August 31, 2020 (Showing Percentage of Net Assets)

US $ US $ Value Value Shares (Note 1) Shares (Note 1)

COMMON STOCKS – 93.8% INDUSTRIALS — 1.4% CONSUMER DISCRETIONARY — 8.2% Electric & Machinery Industry — 0.8% Automobile Industry — 1.3% Rexon Industrial Corp. Ltd. �� 501,000 $ 1,716,017 Yulon Motor Co., Ltd. * �� 3,290,000 $ 2,836,835 Electronic Parts & Components Industry — 0.6% Electric & Machinery Industry — 2.1% Shin Zu Shing Co., Ltd. �� 242,435 1,247,642 Cub Elecparts, Inc. �� 417,000 2,380,502 TOTAL INDUSTRIALS �� 2,963,659 Global PMX Co., Ltd. * �� 295,000 2,086,209 4,466,711 INFORMATION TECHNOLOGY — 72.0% Textiles Industry — 2.8% Communications & Internet Industry — 3.3% Fulgent Sun International Holding Co Ltd �� 734,000 3,151,986 Accton Technology Corp. �� 883,000 7,041,971 Makalot Industrial Co., Ltd. �� 446,000 3,002,062 6,154,048 Computer & Peripheral Equipment Industry — 3.0% Trading & Consumers’ Goods Industry — 2.0% Asia Vital Components Co., Ltd. * �� 1,324,000 3,167,691 Poya International Co., Ltd. �� 218,000 4,272,106 Asustek Computer, Inc. �� 128,000 1,060,068 TOTAL CONSUMER DISCRETIONARY �� 17,729,700 Pegatron Corp. �� 524,000 1,116,167 Wistron Corp. �� 941,000 1,023,053 CONSUMER STAPLES — 3.0% 6,366,979 Food Industry — 3.0% Electrical Components & Equipment Industry — 2.0% TCI Co Ltd. �� 397,000 4,336,469 Sensortek Technology Corp. �� 145,000 4,319,138 Uni-President Enterprises Corp. �� 894,995 2,031,480 TOTAL CONSUMER STAPLES �� 6,367,949 Electronic Equipment & Instruments Industry — 1.4% ITEQ Corp. �� 711,000 2,895,711 DIVERSIFIED TELECOMMUNICATIONS SERVICES — 0.8% Communications and Internet Industry — 0.8% Electronic Parts & Components Industry — 16.4% Chief Telecom, Inc. �� 135,000 1,798,988 Elite Material Co., Ltd. * �� 721,000 4,177,360 TOTAL DIVERSIFIED FLEXium Interconnect, Inc. �� 1,223,000 5,251,879 TELECOMMUNICATION SERVICES �� 1,798,988 Hannstar Board Corp. �� 883,000 1,310,589 Lotes Co., Ltd. �� 134,000 1,954,638 FINANCIALS — 0.8% Nan Ya Printed Circuit Board Corp. * �� 138,000 566,740 Financial & Insurance Industry — 0.8% Primax Electronics Ltd. �� 1,482,000 2,257,737 Mega Financial Holding Co., Ltd. �� 1,793,000 1,787,409 Speed Tech Corp. �� 1,222,000 5,122,642 TOTAL FINANCIALS �� 1,787,409 Taiflex Scientific Co., Ltd. �� 1,313,000 2,309,043 TPK Holding Co., Ltd. * �� 1,103,000 1,849,517 HEALTHCARE — 1.0% Unimicron Technology Corp. �� 2,440,000 6,120,478 Healthcare Equipment & Supplies Industry — 1.0% Zhen Ding Technology Holding Ltd. �� 1,047,000 4,389,039 Pegavision Corp. �� 333,000 2,184,704 35,309,662 TOTAL HEALTHCARE �� 2,184,704 Optoelectronics Industry — 5.2% Epistar Corp. * �� 5,562,000 7,563,478 Radiant Opto-Electronics Corp. �� 989,000 3,640,305 11,203,783

10 The accompanying notes are an integral part of the financial statements. Schedule of Investments/August 31, 2020 (Showing Percentage of Net Assets) (concluded)

US $ US $ Value Value Shares (Note 1) Shares (Note 1)

INFORMATION TECHNOLOGY — (continued) Paper and Pulp Industry — 0.3% Semiconductor Equipment Industry — 1.3% Longchen Paper & Packaging Co., Ltd. �� 1,200,000 $ 713,665 Fittech Co., Ltd. �� 549,000 $ 2,862,737 TOTAL MATERIALS �� 14,133,595 TOTAL COMMON STOCKS Semiconductor Industry — 37.1% (Cost — $152,680,021) �� 201,696,061 Chunghwa Precision Test Tech Co., Ltd. �� 44,000 1,055,706 eMemory Technology, Inc. �� 45,000 795,972 TOTAL INVESTMENTS — 93.8% Jentech Precision Industrial Co., Ltd. �� 195,000 2,033,638 (Cost — $152,680,021) �� 201,696,061 Kinsus Interconnect Technology Corp. �� 1,475,000 3,207,232 MediaTek, Inc. �� 205,000 3,884,600 OTHER ASSETS AND LIABILITIES, MPI Corp. �� 679,000 2,614,965 NET—6.2% �� 13,260,099 Novatek Microelectronics Corp. �� 264,000 2,159,399 Parade Technologies Ltd. �� 35,000 1,240,564 NET ASSETS—100.0% �� $ 214,956,160 Silergy Corp. �� 143,000 9,089,344 Taiwan Semiconductor Manufacturing Legend: Co., Ltd. �� 3,223,000 46,848,644 US $ – United States dollar Tong Hsing Electronic Industries Ltd. �� 649,573 2,933,334 United Microelectronics Corp. �� 3,613,000 2,610,487 * Non-income producing Win Semiconductors Corp. �� 138,000 1,345,126 79,819,011 Technology Hardware Industry — 2.3% AURAS Technology Co. Ltd. �� 244,000 1,846,123 Wiwynn Corp. �� 115,000 3,064,942 4,911,065 TOTAL INFORMATION TECHNOLOGY �� 154,730,057

MATERIALS — 6.6% Cement Industry — 6.0% Asia Cement Corp. �� 2,148,000 3,111,293 Taiwan Cement Corp. �� 6,621,065 9,680,612 12,791,905 Electronic Parts & Components Industry — 0.3% Taimide Tech, Inc. �� 264,000 628,025

The accompanying notes are an integral part of the financial statements. 11

Financial Statements

STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS August 31, 2020 For the Year Ended August 31, 2020 Assets: Investment Income: Investments in securities, at value Dividends �� $ 4,219,757 (cost $152,680,021) 4,219,757 (Notes 2 and 3) �� $ 201,696,061 Less: Taiwan stock dividend tax (Note 2) (2,723) Cash �� 915,044 Taiwan withholding tax (Note 2) �� (730,503) Foreign cash (cost $13,102,802) �� 13,111,424 Total investment income �� 3,486,531 Dividends receivable �� 628,774 Prepaid expenses �� 54,524 Expenses: Total assets �� 216,405,827 Management fees (Note 4) �� $ 1,265,318 Performance adjustment �� 451,899 Liabilities: Directors’ fees and expenses �� 257,566 Payable for securities purchased �� $ 694,199 Legal fees �� 246,319 Accrued management fee (Note 4) �� 130,226 Administration and accounting fees �� 210,046 Accrued director’s and officer’s Custodian fees �� 202,930 fees and expenses �� 10,000 Audit fees �� 71,211 Payable for performance adjustment �� 451,899 Delaware franchise tax �� 69,616 Other payables and accrued expenses �� 163,343 Insurance fees �� 66,309 Total liabilities �� 1,449,667 Compliance services fees �� 60,000 Principal financial officer fees �� 60,000 Net Assets �� $ 214,956,160 Stockholder communications �� 35,833 Transfer agent fees �� 20,908 Net Assets Consist of: Miscellaneous �� 53,487 Paid in capital �� $ 205,600,228 Total expenses �� 3,071,442 Total distributable earnings (loss) �� $ 9,355,932 Less: Fee waiver �� (2,978) Net Expenses �� 3,068,464 Net Assets �� $ 214,956,160 Net Investment Income �� 418,067 Net Asset Value, per share ($214,956,160/7,466,650 Realized and Unrealized shares outstanding) �� $ 28.79 Gain (Loss) on: Net realized gain (loss) on: Investments �� 44,416,256 Foreign currency transactions �� 977,222 45,393,478 Net change in unrealized appreciation (depreciation) on: Investments �� 26,678,871 Foreign currency translations �� 14,792 26,693,663 Net realized and unrealized gain �� 72,087,141 Net Increase in Net Assets Resulting From Operations �� $ 72,505,208

12 The accompanying notes are an integral part of the financial statements.

Financial Statements (continued)

STATEMENTS OF CHANGES IN NET ASSETS

Year Ended Year Ended August 31, 2020 August 31, 2019 Increase/(Decrease) in Net Assets Operations: Net investment income �� $ 418,067 $ 1,660,736 Net realized gain (loss) on investments and foreign currency transactions �� 45,393,478 (7,030,895) Net change in unrealized appreciation (depreciation) on investments and foreign currency translations �� 26,693,663 (739,498) Net increase (decrease) in net assets resulting from operations �� 72,505,208 (6,109,657) Distributions to stockholders from: Distributable Income �� (12,915,195) (13,717,272) Total distributions to stockholders �� (12,915,195) (13,717,272) Capital stock transactions (Note 6): Reinvestment of distributions from net investment income and net realized gains �� 285,402 26,740 Cost of shares repurchased (Note 5) �� (4,624,433) (7,442,542) Total capital stock transactions �� (4,339,031) (7,415,802) Increase (decrease) in net assets �� 55,250,982 (27,242,731)

Net Assets Beginning of year �� 159,705,178 186,947,909 End of year �� $ 214,956,160 $ 159,705,178

The accompanying notes are an integral part of the financial statements. 13

Financial Statements (concluded)

FINANCIAL HIGHLIGHTS Selected data for a share of common stock outstanding for the years indicated

Year Ended August 31, 2020 2019† 2018 2017 2016 Selected Per Share Data Net asset value, beginning of year �� $ 20.80 $ 23.05 $ 24.11 $ 19.80 $ 16.74 Income from Investment Operations: Net investment income(a) �� 0.06 0.21 0.22 0.20 0.12(c) Net realized and unrealized gain (loss) on investments and foreign currency transactions �� 9.54 (0.87) (0.65) 4.10 2.94 Total from investment operations �� 9.60 (0.66) (0.43) 4.30 3.06 Less Distributions to Stockholders from: Net investment income �� (1.47) — (0.66) — — Net realized gains �� (0.23) (1.71) — — — Total distributions to stockholders �� (1.70) (1.71) (0.66) — — Capital Share Transactions: Accretion (dilution) to net asset value resulting from share repurchase program, tender offer or issuance of shares for the reinvestment of distributions from net investment income and net realized gains �� 0.09 0.12 0.03 0.01 — Net asset value, end of year �� $ 28.79 $ 20.80 $ 23.05 $ 24.11 $ 19.80 Market value, end of year �� $ 23.65 $ 17.84 $ 19.85 $ 21.37 $ 16.96 Total Return Per share net asset value(b) �� 49.63% 0.49% (1.46)% 21.77% 18.34% Per share market value(b) �� 43.31% 0.08% (4.26)% 26.00% 15.22% Ratio and Supplemental Data: Net Assets, end of year (000s) �� $ 214,956 $ 159,705 $ 186,948 $ 197,571 $ 162,881 Ratio of expenses before fee waiver �� 1.70% 1.74% 1.71% 1.78% 2.05% Ratio of expenses after fee waiver �� 1.70% 1.73% 1.71% 1.78% 2.05% Ratio of net investment income �� 0.23% 1.07% 0.94% 0.99% 0.72%(c) Portfolio turnover rate �� 241% 115% 112% 89% 105% (a) Based on average shares outstanding during the period. (b) Total investment return at net asset value (“NAV”) is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV. (c) Amount includes a non-recurring refund for over-billing of prior years’ custody out of pocket expense which amounted to $0.012 per share and 0.07% of average net assets. † The Fund’s investment management arrangements changed in June 2019.

14 The accompanying notes are an integral part of the financial statements. Notes To Financial Statements August 31, 2020

1. Organization 2. Significant Accounting Policies The Taiwan Fund, Inc. (the “Fund”), a Maryland The financial statements are prepared in accordance with corporation, is registered under the Investment Company U.S. generally accepted accounting principles (“GAAP”), Act of 1940, as amended (the “1940 Act”), as a diversified which require management to make estimates and closed-end management investment fund. Prior to May 21, assumptions that affect the reported amounts of assets and 2020 the Fund was incorporated in Delaware. liabilities. Actual results could differ from those estimates. Management has evaluated the impact of all events or The Fund is an investment company and accordingly follows transactions occurring after year end through the date these the investment company accounting and reporting guidance financial statements were issued, and has determined that of the Financial Accounting Standards Board Accounting there were no subsequent events requiring recognition Standard Codification Topic 946 “Financial Services - or disclosure. The following summarizes the significant Investment Companies.” accounting policies of the Fund: The Fund concentrates its investments in the securities Security Valuation. All securities, including those traded listed on the Taiwan Stock Exchange. Because of this over-the-counter, for which market quotations are readily concentration, the Fund may be subject to certain available are valued at the last sales price prior to the time additional risks not typically associated with investing of determination of the Fund’s net asset value per share in securities of U.S. companies or the U.S. government, or, if there were no sales on such date, at the closing price including (1) volatility of the Taiwan securities market, (2) quoted for such securities (but if bid and asked quotations restrictions on repatriation of capital invested in Taiwan, are available, at the mean between the last current bid and (3) fluctuations in the rate of exchange between the New asked prices, rather than such quoted closing price). These Taiwan Dollar and the U.S. Dollar, and (4) political and securities are generally categorized as Level 1 securities in economic risks. In addition, Republic of China accounting, the fair value hierarchy. In certain instances where the price auditing, financial and other reporting standards are not determined above may not represent fair market value, equivalent to U.S. standards and, therefore, certain material the value is determined in such manner as the Board of disclosures may not be made, and less information may Directors (the “Board”) may prescribe. Foreign securities be available to investors investing in Taiwan than in the may be valued at fair value according to procedures United States. There is also generally less regulation by approved by the Board if the closing price is not reflective governmental agencies and self-regulatory organizations with of current market values due to trading or events occurring respect to the securities industry in Taiwan than there is in in the valuation time of the Fund. In addition, substantial the United States. changes in values in the U.S. markets subsequent to the close of a foreign market may also affect the values of securities traded in the foreign market. These securities may be categorized as Level 2 or Level 3 securities in the fair value hierarchy, depending on the valuation inputs. Short- term investments, having a maturity of 60 days or less are valued at amortized cost, which approximates market value, with accrued interest or discount earned included in interest receivable.

15 Notes To Financial Statements (continued) August 31, 2020

2. Significant Accounting Policies — continued The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with The Fund has adopted fair valuation accounting standards investing in those securities. which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards Repurchase Agreements. In connection with transactions require additional disclosures about the various inputs and in repurchase agreements, it is the Fund’s policy that its valuation techniques used to develop the measurements custodian take possession of the underlying collateral of fair value and a discussion in changes in valuation securities, the fair value of which exceeds the principal techniques and related inputs during the period. These amount of the repurchase transaction, including accrued inputs are summarized in the three broad levels listed below: interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the • Level 1 – quoted unadjusted prices for identical Fund may be delayed or limited. As of August 31, 2020, the instruments in active markets to which the Fund has Fund was not participating in any repurchase agreements. access at the date of measurement. Foreign Currency Translation. The financial accounting records • Level 2 – quoted prices for similar instruments in of the Fund are maintained in U.S. Dollars. Investment active markets; quoted prices for identical or similar securities, other assets and liabilities denominated in a instruments in markets that are not active; and model foreign currency are translated into U.S. Dollars at the derived valuations in which all significant inputs and current exchange rate. Purchases and sales of securities, significant value drivers are observable in active markets. income receipts and expense payments are translated Level 2 inputs are those in markets for which there into U.S. Dollars at the exchange rate on the dates of the are few transactions, the prices are not current, little transactions. public information exists or instances where prices vary substantially over time or among brokered market Reported net realized gains and losses on foreign currency makers. transactions represent net gains and losses from disposition of foreign currencies, currency gains and losses realized • Level 3 – model derived valuations in which one or between the trade dates and settlement dates of security more significant inputs or significant value drivers are transactions, and the difference between the amount unobservable. Unobservable inputs are those inputs of net investment income accrued and the U.S. Dollar that reflect the Fund’s own assumptions that market amount actually received. The effects of changes in foreign participants would use to price the asset or liability based currency exchange rates on investments in securities are on the best available information. not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but Investments in Securities Level 1 Level 2 Level 3 Total are included in realized and unrealized gain or loss on investments. Common Stocks^ �� $201,696,061 $ — $ — $201,696,061 Total �� $201,696,061 $ — $ — $201,696,061

^ See schedule of investments for industry breakout.

16 Notes To Financial Statements (continued) August 31, 2020

2. Significant Accounting Policies — continued transaction tax is embedded in the cost basis of each security and contributes to the realized gain or loss for the Fund. Forward Foreign Currency Transactions. A forward foreign Security transaction taxes are not accrued until the tax currency contract (“Forward”) is an agreement between two becomes payable. parties to buy or sell currency at a set price on a future date. The Fund may enter into Forwards in order to hedge foreign The Fund’s functional currency for tax reporting purposes is currency risk or for other risk management purposes. the New Taiwan Dollar. Realized gains or losses on Forwards include net gains or The Fund recognizes the tax benefits of uncertain tax losses on contracts that have matured or which the Fund has positions only where the position is “more likely than not” terminated by entering into an offsetting closing transaction. to be sustained assuming examination by tax authorities. Unrealized appreciation or depreciation on Forwards, if any, Management has analyzed the Fund’s tax positions, and has is included in the Statement of Assets and Liabilities. The concluded that no liability for unrecognized tax benefits portfolio could be exposed to risk of loss if the counterparty should be recorded related to uncertain tax positions is unable to meet the terms of the contract or if the value of taken on returns filed for prior three fiscal years. The the currency changes unfavorably. As of August 31, 2020, Fund identifies its major tax jurisdictions as U.S. Federal, the Fund had no open Forwards. Maryland and Taiwan where the Fund is not aware of any Indemnification Obligations. Under the Fund’s organizational tax positions for which it is reasonably possible that the total documents, its officers and directors are indemnified against amounts of unrecognized tax benefits will change materially certain liabilities arising out of the performance of their in the next twelve months. Prior to May 21, 2020 the Fund duties to the Fund. In addition, in the normal course of identified Delaware as a major tax jurisdiction. business the Fund enters into contracts that provide general Investment Income. Dividend income is recorded on the indemnifications to other parties. The Fund’s maximum ex-dividend date; except, where the ex-dividend date may exposure under these arrangements is unknown as this have passed, certain dividends from foreign securities are would involve future claims that may be made against the recorded as soon as the Fund is informed of the ex-dividend Fund that have not yet occurred. date. Taxes. As a qualified Regulated Investment Company Taiwanese companies typically declare dividends in the under Subchapter M of the Internal Revenue Code, the Fund’s third fiscal quarter of each year. As a result, the Fund Fund is not subject to income taxes to the extent that it receives substantially less dividend income in the first half of distributes all of its investment company taxable income its year. Interest income, which includes accretion of original and net realized capital gains for its fiscal year. In addition discount, is accrued as earned. to federal income tax for which the Fund is liable on undistributed amounts, the Fund is subject to federal excise Dividend and interest income generated in Taiwan is tax on undistributed investment company taxable income subject to a 21% withholding tax. Stock dividends received and net realized capital gains. The Fund was organized (except those which have resulted from capitalization of in Delaware until May 21, 2020 and as such was required capital surplus) are taxable at 21% of the par value of the to pay Delaware an annual franchise tax. Also, the Fund stock dividends received. Beginning with the fiscal year is currently subject to a Taiwan security transaction tax ended August 31, 2019, the withholding tax is treated as a of 0.3% on sales of equities and 0.1% on sales of mutual reduction of investment income. fund shares based on the transaction amount. Security

17 Notes To Financial Statements (continued) August 31, 2020

2. Significant Accounting Policies — continued 3. Purchases and Sales of Securities Distributions to Stockholders. The Fund distributes to For the year ended August 31, 2020, purchases and sales stockholders at least annually, substantially all of its taxable of securities, other than short-term securities, aggregated ordinary income and expects to distribute its taxable net $395,732,858 and $411,811,020 respectively. realized gains. Certain foreign currency gains (losses) are taxable as ordinary income and, therefore, increase 4. Management Fees and Other Service Providers (decrease) taxable ordinary income available for distribution. Pursuant to the Dividend Reinvestment and Cash Purchase Management Fee. The Fund entered into an Investment Plan (the “Plan”), stockholders may elect to have all cash Management Agreement (the “Agreement”) with Allianz distributions automatically reinvested in Fund shares. Global Investors U.S. LLC (“AIIianz”). Under the terms of the (See the summary of the Plan described later.) Unless the Agreement, Allianz receives a fee for its services, computed Board elects to make a distribution in shares of the Fund’s daily and payable monthly in U.S. dollars, at the annual rate common stock, stockholders who do not participate in of 0.70% of the Fund’s average daily net assets (“Base Fee”). the Plan will receive all distributions in cash paid by check Effective September 1, 2019 the Adviser’s compensation will in U.S. dollars. Income and capital gain distributions are be increased or decreased from the Base Fee by a performance determined in accordance with income tax regulations, adjustment (“Performance Adjustment”) that depends on which may differ from GAAP. No capital gain distributions whether, and to what extent, the investment performance of shall be made until any capital loss carryforwards have been the Fund’s shares exceeds, or is exceeded by, the performance fully utilized or expired. of the TAIEX Total Return Index, expressed in U.S. dollars (the “Index”). The Performance Adjustment is calculated and Tax components of distributable earnings are determined accrued, according to a schedule that adds or subtracts an in accordance with income tax regulations which may differ amount at a rate of 0.0005% (0.05 basis points) of the Fund’s from the composition of net assets reported under GAAP. average daily assets for the current fiscal year through the Book and tax basis differences, if any, are primarily due prior business day for each 0.01% (1 basis point) of absolute to differing treatments for foreign currency transactions, performance by which the total return performance of the net operating loss and post October capital and late year Fund’s shares exceeds or lags the performance of the Index ordinary loss deferrals. for the period from the beginning of the current performance Permanent book and tax basis differences relating to period (“Performance Period” ) through the prior business stockholder distributions will result in reclassifications day. The Performance Period was initially from September between components of net assets. Accordingly, for the year 1,2019 to August 31, 2020 and thereafter each 12-month ended August 31, 2020, the effects of certain differences period beginning on September 1 immediately following the were reclassified. The Fund decreased distributable prior Performance Period through August 31 of the following earnings by $ 76,683,066 , and increased paid in capital by year. The maximum Performance Adjustment (positive or $76,683,066. negative) will not exceed an annualized rate of +/-0.25% (25 basis points) of the Fund’s average daily net assets, which Security Transactions. Security transactions are accounted as would occur when the performance of the Fund’s shares of the trade date. Gains and losses on securities sold are exceeds, or is exceeded by, the performance of the Index by determined on the basis of identified cost. 5 percentage points (500 basis points) for the Performance Period. This Performance Fee will be calculated daily and paid at the end of the Performance Period.

18 Notes To Financial Statements (continued) August 31, 2020

4. Management Fees and Other Service Other Service Providers. Pursuant to a Compliance Services Providers — continued Agreement, Foreside Fund Officer Services, LLC (‘‘FFOS’’) provides the Fund with a Chief Compliance Officer. FFOS For the period September 1, 2019 through August 31, 2020, is paid customary fees for its services. Foreside Management the management fee was equivalent to an annual rate of Services, LLC (“FMS”) provides the Fund with a Treasurer. 0.95% of the Fund’s average daily net assets which reflected Neither FFOS, FMS, nor their employees that serve a 0.25% Performance Adjustment (annualized),based on the as officers of the Fund, have a role in determining the Fund’s net asset value outperforming the Fund’s benchmark investment policies or which securities are purchased or sold by more than five percentage points. by the Fund. During the year ended August 31, 2019 FFOS Administration Fees. State Street Bank and Trust Company and FMS agreed to waive a portion of their fees. (“State Street”) provides or arranges for the provision of General. Certain officers of the Fund may also be employees certain administrative and accounting services for the of the aforementioned companies that provide services Fund, including maintaining the books and records of the to the Fund, and during their terms of office, receive no Fund,and preparing certain reports and other documents compensation from the Fund. required by federal and/or state laws and regulations. State Street also provides certain legal administrative services, including corporate secretarial services and preparing 5. Discount Management Policy regulatory filings. State Street also serves as the custodian The Board has approved a Program which authorizes (the “Custodian”) to the Fund. For these services, the Fund management to make open market purchases in an aggregate pays State Street both fixed fees and asset based fees that amount up to 10% of the Fund’s outstanding shares. Under vary according to the number of positions and transactions the Program, shares may be repurchased at differing trigger and out of pocket expenses. The expenses related to levels that will not be announced. Any repurchases will be legal administrative services have been reclassified on the disclosed in the Fund’s stockholder reports for the relevant Statement of Operations from legal fees to administration fiscal periods and updated in the Fund’s monthly reports and accounting fees to better align the fees with the services when repurchases are made. Any repurchases made under provided. the Program will be announced on Monday of each week for Director’s and Officer’s Fees and Expenses. The Fund pays each repurchases made during the prior week. of its directors who is not an “interested person” of the For the year ended August 31, 2020, the Fund repurchased Fund, as the term is defined in the 1940 Act, an annual fee 226,158 of its shares at an average price of $20.08 per share of $20,000 ($30,000 for the Chairman of the Board and (including brokerage commissions) at an average discount of the Chairman of the Audit Committee) plus a fee of $2,000 14.09%. These repurchases had a total cost of $4,624,433. for each Board meeting or Committee meeting attended in person or by telephone. In addition, the Fund will The Board will continue to review the Program and its reimburse each of the directors for travel and out-of-pocket effectiveness, and, as appropriate, may make further expenses incurred in connection with Board meetings. enhancements as it believes are necessary.

19 Notes To Financial Statements (concluded) August 31, 2020

6. Fund Shares The difference between book basis and tax basis unrealized appreciation and depreciation is attributable primarily At August 31, 2020, there were 100,000,000 shares of $0.01 to the tax deferral of losses on wash sales and passive par value capital stock authorized, of which 7,466,650 were foreign investment company adjustments. At August 31, issued and outstanding. 2020, the aggregate cost basis of the Fund’s investment For the year ended August 31, 2020, the Fund repurchased securities for income tax purposes was $153,410,638. Net 226,158 shares of its common stock, valued at $4,624,433, unrealized appreciation of the Fund’s investment securities including commission and trading fees of $15,831, from was $48,285,423 of which $52,915,524 was related to stockholders under the Program. appreciated investment securities and $4,630,101 was related to depreciated investment securities. For the For the The notes to the financial statements in the Fund’s Year Ended Year Ended August 31, 2020 August 31, 2019 semi-annual report for the period ended April 30, 2020, included a description of an issue regarding the federal Shares outstanding at income tax treatment of amounts the Fund repatriates from beginning of year �� 7,679,198 8,112,169 Taiwan. The issue has been favorably resolved. Shares issued from reinvestment of distributions �� 13,610 1,777 Shares repurchased �� (226,158) (434,748) Shares outstanding at end of year �� 7,466,650 7,679,198

7. Federal Tax Information The tax character of distributions paid by the Fund during the year ended August 31, 2020 is as follows:

Period Ended August 31, 2020

Capital Gains �� $ 1,250,392 Ordinary Income �� $ 11,664,803 Total �� $ 12,915,195

As of August 31, 2020, the tax components of accumulated net earnings (losses) were $17,383,494 of Undistributed Ordinary Income, $48,295,186 of Unrealized Appreciation, $4,596,291 of Undistributed Capital Gains and $(60,919,039) of post October capital and late-year ordinary losses. For the year ended August 31, 2020, the amount of capital loss carryover utilized was $4,235,482.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of The Taiwan Fund, Inc.

Opinion on the Financial Statements We have audited the accompanying statement of assets and liabilities of The Taiwan Fund, Inc. (the “Fund”), including the schedule of investments, as of August 31, 2020, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the Fund’s auditor since 2007. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2020 by correspondence with the custodian and brokers or through other appropriate auditing procedures when replies from brokers could not be obtained. We believe that our audits provide a reasonable basis for our opinion.

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania October 27, 2020

Other Information (unaudited)

The Annual Meeting of Stockholders was held on April 21, 2020 telephonically (the “Annual Stockholder Meeting”). The voting results for the proposals considered at the Annual Stockholder Meeting are as follows: 1. Election of Directors. The stockholders of the Fund elected William C. Kirby, Shelley E. Rigger, Anthony S. Clark, Thomas G. Kamp and Warren J. Olsen to the Board of Directors to serve for a one year term expiring on the date of which the annual meeting of stockholder is held in 2021 or until their successors are elected and qualified.

Director Votes cast “for” Votes “against/withheld”

William C. Kirby �� 5,884,039 272,263 Shelley E. Rigger �� 5,797,032 359,270 Anthony S. Clark �� 5,796,256 360,046 Thomas G. Kamp �� 5,885,078 271,224 Warren J. Olsen �� 5,797,297 359,005

2. Approval of an Agreement of Merger. The stockholders of the Fund voted to approve an Agreement of Merger reincorporating the Fund, currently a Delaware corporation, as a Maryland corporation by means of a merger of the Fund into a wholly-owned, newly formed Maryland subsidiary.

For Against Abstain Non-votes

5,448,370 239,308 7,370 461,254

Federal Tax Information. The Fund has made an election under Internal Revenue Code Section 853 to pass through foreign taxes paid by the Fund to its stockholders. For the year ended August 31, 2020, the total amount of foreign taxes paid that was passed through to its stockholders for information reporting purposes was $722,620 (representing taxes withheld plus taxes on stock dividends). In addition, for the year ended August 31, 2020, the Fund paid distributions of $1,250,392 which were designated as long term capital gains dividends.

Other Information (unaudited) (continued)

Privacy Notice

The Taiwan Fund, Inc. collects non-public personal information about its stockholders from the following sources:  Information it receives from stockholders on applications or other forms;  Information about stockholder transactions with the Fund, its affiliates, or others; and  Information it receives from a consumer reporting agency. The Fund’s policy is to not disclose nonpublic personal information about its stockholders to nonaffiliated third parties (other than disclosures permitted by law). The Fund restricts access to nonpublic personal information about its stockholders to those agents of the Fund who need to know that information to provide products or services to stockholders. The Fund maintains physical, electronic, and procedural safeguards that comply with federal standards to guard it stockholders’ nonpublic personal information.

Proxy Voting Policies and Procedures A description of the policies and procedures that are used by the Fund’s investment adviser to vote proxies relating to the Fund’s portfolio securities is available (1) without charge, upon request, by calling 1-800-426-5523; and (2) as an exhibit to the Fund’s annual report on Form N-CSR which is available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov. Information regarding how the investment adviser voted these proxies during the most recent 12-month period ended June 30 is available without charge, upon request, by calling the same number or by accessing the Commission’s website.

Quarterly Portfolio of Investments A Schedule of Investments will be filed as of the end of the first and third quarter of each fiscal year on Form N-Q and will be available on the Securities and Exchange Commission’s website at http://www.sec.gov. Form N-Q was filed as of November 30, 2019 for the first quarter of this fiscal year and is available on the Securities and Exchange Commission’s website at www.sec.gov. Starting May 1, 2020 the Fund files its complete Schedule of Investments with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. The quarterly Schedule of Investments will be made available without charge, upon request, by calling 1-800-426-5523

Other Information (unaudited) (concluded)

Certifications The Fund’s chief executive officer has certified to the New York Stock Exchange that, as of April 27, 2020, he was not aware of any violation by the Fund of applicable New York Stock Exchange corporate governance listing standards. Also, in accordance with Section 303A.12 of the New York Stock Exchange Listed Company Manual, the Fund submitted an Interim Written Affirmation on April 29, 2018. The Fund also has included the certifications of the Fund’s chief executive officer and chief financial officer required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 in the Fund’s Form N-CSR filed with the Commission, for the period of this report.

24 Summary of Dividend Reinvestment and Cash Purchase Plan

What is the Dividend Reinvestment and Cash Purchase Plan? The Dividend Reinvestment and Cash Purchase Plan (the “Plan”) offers stockholders of the Fund, a prompt and simple way to reinvest their dividends and capital gains distributions in shares of the Fund. The Fund will distribute to stockholders, at least annually, substantially all of its net income and expects to distribute annually its net realized capital gains. Computershare Trust Company, N.A. (the “Plan Administrator”), acts as Plan Administrator for stockholders in administering the Plan. The Plan also allows you to make optional cash investments in Fund shares through the Plan Administrator.

Who Can Participate in the Plan? If you own shares in your own name, you can elect to participate directly in the Plan. If you own shares that are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to arrange for them to participate on your behalf.

What Does the Plan Offer? The Plan has two components; reinvestment of dividends and capital gains distributions, and a voluntary cash purchase feature.

Reinvestment of dividends and capital gains distributions If you choose to participate in the Plan, your dividends and capital gains distributions will be promptly invested for you, automatically increasing your holdings in the Fund. If the Fund declares a dividend or capital gains distribution payable in cash, you will automatically receive shares purchased by the Plan Administrator on the open market. You will be charged a per share fee (currently $0.05) incurred with respect to the Plan Administrator’s open market purchases. If a distribution is declared which is payable in shares or cash at the option of the stockholder and if on the valuation date (generally the payable date) the market price of shares is equal to or exceeds their net asset value, the Fund will issue new shares to you at the greater of the following: (a) net asset value per share or (b) 95% of the market price per share. If the market price per share on the valuation date is less than the net asset value per share, the Fund will issue new shares to you at the market price per share on the valuation date. All reinvestments are in full and fractional shares, carried to three decimal places. In the case of foreign (non-U.S.) stockholders, reinvestment will be made net of applicable withholding tax. The Plan will not operate if a distribution is declared in shares only, subject to an election by the stockholders to receive cash.

25 Summary of Dividend Reinvestment and Cash Purchase Plan (continued)

Voluntary cash purchase option Plan participants have the option of making investments in Fund shares through the Plan Administrator. You may invest any amount from $100 to $3,000 semi-annually. The Plan Administrator will purchase shares for you on the New York Stock Exchange or otherwise on the open market on or about February 15 and August 15. If you hold shares in your own name, you should deal directly with the Plan Administrator. Checks in U.S. dollars and drawn in U.S. banks should be made payable to “Computershare”. The Plan Administrator will not accept cash, traveler’s checks, money orders, or third party checks. We suggest you send your check, along with a completed transaction form which is attached to each statement you receive, to the following address to be received at least two business days before the investment date: Computershare, c/o The Taiwan Fund, Inc. at P.O. Box 43078, Providence, RI 02940-3078. The Plan Administrator will return any cash payments received more than thirty days prior to February 15 or August 15, and you will not receive interest on uninvested cash payments. If you own shares that are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to arrange for them to participate in the cash purchase option on your behalf. If your check is returned unpaid for any reason, the Plan Administrator will consider the request for investment of such funds null and void, and shall immediately remove these shares from your account. The Plan Administrator shall be entitled to sell shares to satisfy any uncollected amount plus any applicable fees. If the net proceeds of the sale are insufficient to satisfy the balance of any uncollected amounts, the Plan Administrator shall be entitled to sell such additional shares from your account as may be necessary to satisfy the uncollected balance.

Is There a Cost to Participate? For purchases from the reinvestment of dividends and capital gains distributions, you will pay a pro rata portion of brokerage commissions payable with respect to purchases of shares by the Plan Administrator on the open market. You will also be charged a per share fee (currently $0.05) incurred with respect to the Plan Administrator’s open market purchases in connection with the reinvestment of dividends and capital gains distributions. Brokerage charges for purchasing shares through the Plan are expected to be less than the usual brokerage charges for individual transactions, because the Plan Administrator will purchase stock for all participants in blocks, resulting in lower commissions for each individual participant. The Plan Administrator’s transaction fees for handling capital gains distributions or income dividends will be paid by the Fund. For purchases from voluntary cash payments, participants are charged a service fee (currently $0.75 per investment) and a per fee (currently $0.05) for each voluntary cash investment. Per share fees include any brokerage commissions the Plan Administrator is required to pay. Brokerage commissions and service fees, if any, will be deducted from amounts to be invested.

26 Summary of Dividend Reinvestment and Cash Purchase Plan (continued)

What Are the Tax Implications for Participants? You may withdraw from the Plan without penalty at any time by calling the Plan Administrator at 1-800-426-5523, by accessing your Plan account at the Plan Administrator’s web site, www.computershare.com/investor or by written notice to the Plan Administrator. You will receive tax information annually for your personal records and to help you prepare your federal income tax return. The automatic reinvestment of dividends and capital gains distributions does not relieve you of any income tax which may be payable on dividends or distributions. For further information as to the tax consequences of participating in the Plan, you should consult with your tax advisors. If the Fund issues shares upon reinvestment of a dividend or capital gains distribution, for U.S. federal income tax purposes, the amount reportable in respect of the reinvested amount of the dividend or distribution will be the fair market value of the shares received as of the payment date, which will be reportable as ordinary dividend income and/or long term capital gains. The shares will have a tax basis equal to such fair market value, and the holding period for the shares will begin on the day after the payment date. State, local and foreign taxes may also be applicable.

Once Enrolled in the Plan, May I Withdraw From It? If you withdraw, you will receive, without charge, stock certificates issued in your name for all full shares, and a check for any fractional share (valued at the market value of the shares at the time of withdrawal or termination) less any applicable fees. You may also request that the Plan Administrator sell your shares and send you the proceeds, less a transaction fee of $2.50 and a per share fee of $0.15 for any request for withdrawal or termination. The per share fee includes any brokerage commissions the Plan Administrator is required to pay. Alternatively, you may also request that the Plan Administrator move your whole shares to the Direct Management System, which would allow you to maintain ownership of those whole shares in book entry form on the records of the Fund. All sale requests having an anticipated market value of $100,000.00 or more are expected to be submitted in written form. In addition, all sale requests within thirty (30) days of an address change are expected to be submitted in written form.

27 Summary of Dividend Reinvestment and Cash Purchase Plan (concluded)

Whom Should I Contact for Additional Information? If you hold shares in your own name, please address all notices, correspondence, questions, or other communications regarding the Plan to: Computershare, c/o The Taiwan Fund, Inc. at P.O. Box 43078, Providence, RI 02940-3078, by telephone at 1-800-426-5523 or through the Internet at www.computershare.com/investor. If your shares are not held in your name, you should contact your brokerage firm, bank, or other nominee for more information and to arrange for them to participate in the Plan on your behalf. Either the Fund or the Plan Administrator may amend or terminate the Plan. Except in the case of amendments necessary or appropriate to comply with applicable law, rules or policies or a regulatory authority, participants will be mailed written notice at least 30 days before the effective date of any amendment. In the case of termination, participants will be mailed written notice at least 30 days before the record date of any dividend or capital gains distribution by the Fund.

Directors and Officers (unaudited)

The following table sets forth certain information concerning each of the directors and officers of the Fund. Directors serve from the time of election and qualifications at the Fund’s annual meeting of stockholders until the next annual meeting of stockholders or until their respective successors have been elected and qualified. All Officers serve for one year or until their respective successors are chosen and qualified.

Other Number of Funds Directorships/ Position(s) Principal Occupation(s) or in the Complex(1) Trusteeships in Name (Age) and Held with Director Employment During Overseen by the Publicly Held Address of Directors Fund Since Past Five Years Director Companies

Directors Considered Independent Persons

William C. Kirby (70) Chairman of 2013 T. M. Chang Professor of China 1 Cabot Harvard University the Board and Studies (2006-present); Spangler Corporation. CGIS South Building Director Family Professor of Business 1730 Cambridge Street Administration (2006-present); Cambridge, MA 02138 Chairman, Harvard China Fund (2006-present); Harvard University Distinguished Service Professor (2006-present); and Director, John K. Fairbank Center for Chinese Studies, Harvard University (2006-2014).

Anthony S. Clark (67) Director 2017 Managing Member, Innovation 1 Director, 3307 N. Columbus St. Capital Management, LLC (2016 Aberdeen Japan Arlington, VA 22207 to present); Chief Investment Equity Fund, Officer of the Pennsylvania State Inc. Employees’ Retirement System (2010 to 2013); Deputy Chief Investment Officer of the Pension Benefit Guaranty Corporation (PBGC) (2009 to 2011).

Thomas G. Kamp, CFA (59) Director 2018 President, Chief Investment 1 None. 5821 Southwood Drive Officer and Director, Minneapolis, MN 55437 Cornerstone Capital Management LLC (2006-2016).

Directors and Officers (unaudited) (continued)

Warren J. Olsen (63) Director 2018 Chairman and Chief 1 Aetos Multi- SCB Global Capital Investment Officer, SCB Strategy Management Global Capital Management Arbitrage Fund, 300 S. Jackson Street (2014-present); Vice Chairman LLC; Aetos Suite 220 and Chief Investment Officer, Distressed Denver, CO 80209 First Western Financial Inc. Investment (2002-2014). Strategies Fund, LLC; Aetos Long/Short Strategies Fund, LLC.

Shelley E. Rigger (58) Director 2016 Brown Professor of East Asian 1 None. Davidson College Politics, Davidson College Box 7018 (1993-present). Davidson, NC 28035-7018

Directors and Officers (unaudited) (concluded)

The following table provides information concerning each of the officers of the Fund.

Position(s) Held Principal Occupation(s) or Employment Name, Address, and Age with the Fund Since During Past Five Years

Officers of the Fund

Thomas Fuccillo (52) President 2019 Managing Director and Head of US Funds of Allianz Global Allianz Global Investors U.S. Investors U.S. Holdings LLC; Managing Director of Allianz Holdings LLC Global Investors Distributors LLC; Trustee, President and 1633 Broadway Chief Executive Officer of 63 funds in the AllianzGI Funds New York, NY 10019 Complex; and President and Chief Executive Officer of The Korea Fund, Inc. Formerly, Associate General Counsel, Head of US Funds and Retail Legal; Chief Legal Officer and Secretary of Allianz Global Investors Distributors LLC; Vice President, Secretary and Chief Legal Officer of numerous funds in the AllianzGI Funds Complex; and Secretary and Chief Legal Officer of The Korea Fund, Inc.

Monique Labbe (46) Treasurer 2017 Senior Director, Foreside Fund Officer Services, LLC Foreside Fund Officer Services, LLC (2014-present); Principal/Assistant Vice President, State Street 10 High Street, Suite 302 Global Advisers (2012-2014). Boston, MA 02110

Brian F. Link (47) Secretary 2014 Vice President and Managing Counsel, State Street Bank and State Street Bank and Trust Company Trust Company (2007-present). One Lincoln Street SFC0805 Boston, MA 02111

Patrick Keniston (56) Chief Compliance 2015 Managing Director of Foreside Fund Officer Services LLC, Foreside Fund Officer Services, LLC Officer (2008-present). Three Canal Plaza, Suite 100 Portland, ME 04101

UNITED STATES ADDRESS ADMINISTRATOR AND ACCOUNTING AGENT The Taiwan Fund, Inc. State Street Bank and Trust Company c/o State Street Bank and Trust Company Boston, MA One Lincoln Street P.O. Box 5049 CUSTODIAN Boston, MA State Street Bank and Trust Company 1-877-217-9502 Boston, MA www.thetaiwanfund.com TRANSFER AGENT, DIVIDEND PAYING AGENT AND INVESTMENT ADVISER REGISTRAR Allianz Global Investors U.S. LLC Computershare Trust Company, N.A. 1633 Broadway Canton, MA New York, NY 10019 LEGAL COUNSEL DIRECTORS AND OFFICERS Clifford Chance US LLP William C. Kirby, Chairman of the Board and Share New York, NY Repurchase Program Committee, Member, Audit Lee and Li Committee, Nominating Committee, Valuation Taipei, Taiwan Committee and Independent Director Anthony S. Clark, Chairman, Valuation Committee, INDEPENDENT REGISTERED PUBLIC Member, Audit Committee, Nominating Committee, ACCOUNTING FIRM Share Repurchase Program Committee, and Independent Tait, Weller & Baker LLP Director Philadelphia, PA Thomas G. Kamp, Chairman, Audit Committee, Member, Share Repurchase Program Committee, Nominating Committee, Valuation Committee and Independent Director Shelley E. Rigger, Chair, Nominating Committee, Member, Audit Committee, Share Repurchase Program Committee, Valuation Committee and Independent Director Warren J. Olsen, Member, Audit Committee, Nominating Committee, Share Repurchase Program Committee, Valuation Committee and Independent Director Thomas J. Fuccillo, President Patrick J. Keniston, Chief Compliance Officer Brian F. Link, Secretary Monique Labbe, Treasurer

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that from time to time the Fund may purchase shares of its common stock in the open market at prevailing market prices.